2025.12.2208:22:06UTC+00China Stocks Hit Two-Week High

On Monday, the Shanghai Composite experienced a gain of 0.7%, closing at 3,917, while the Shenzhen Component saw an increase of 1.5%, ending at 13,333. Mainland stocks continued their upward trend for the fourth consecutive session, reaching a two-week high due to steady fund inflows and announcements regarding the development of a new free-trade port in Hainan. According to recent data, China's private fund sector reached a new record, expanding to 22.1 trillion yuan in November, indicating ongoing investment in equities. Investor sentiment received a further boost as authorities officially launched operations at the Hainan Free Trade Port, highlighting Beijing's efforts to open up the economy. Shares linked to Hainan, such as China Tourism Group Duty Free, Hainan Airlines, Hainan Airport Infrastructure, and Hainan Strait Shipping, all surged to their daily limit of 10%. The technology sector also performed well, with Eoptolink rising by 6.9% and Zhongji Innolight increasing by 5.5%. In contrast, banking and industrial sectors faced declines, and BOE Technology slipped by 0.7% after US lawmakers suggested including it on a Pentagon list for companies associated with the Chinese military.